Features

Two New Tri-Land Investment Funds Hungry to Acquire Grocery-Anchored Retail Assets in Midwest, Southeast

by Kristin Harlow June 11, 2019

In today’s volatile retail real estate climate, there is ample need for redevelopment or value-add acquisitions. Tri-Land, a Chicago-based owner and operator, is one such company known for repositioning underperforming retail centers. Established in 1978, the company is launching two new investment funds beginning in July. The two funds — which combined total $30 million — seek to purchase between four and eight properties over a 30-month period. The strategy of the investment funds will be to acquire properties located in Midwest and Southeast markets, including Chicago, Milwaukee, Minneapolis, Kansas City and Atlanta. More specifically, the funds will target grocery-anchored retail centers where the supermarket requires an on-site expansion, repositioning or relocation. During the past five years, Tri-Land has focused on the redevelopment of 10 legacy assets in Minneapolis, Kansas City, Indianapolis and Chicago. The company has sold each project upon completion of the redevelopment. This year, redevelopment of the 10 assets will be complete. This will enable Tri-Land to concentrate on new redevelopment opportunities. Against that backdrop, REBusinessOnline spoke with Richard Dube, the company’s president, at the ICSC RECon show in Las Vegas, which attracted more than 30,000 attendees. What follows is an edited transcript of the conversation. REBusinessOnline: …

June 11, 2019

Conference Coverage Features North Carolina South Carolina Southeast Southeast Feature Archive

Best Deals for Investors, Lenders Lie Outside of Urban Cores, Say InterFace Carolinas Panelists

by John Nelson June 6, 2019

CHARLOTTE, N.C. — The urban districts in the Carolinas have a lot going for them: Honeywell is leasing nine floors within downtown Charlotte’s Legacy Union project; The Fallon Co. is building a 20-story office tower in downtown Raleigh; and The Beach Co. and Centennial American Properties are separately building mixed-use developments in downtown Greenville. While these projects only scratch the surface of the new developments in the Carolinas’ urban markets — especially for new apartments — speakers at the 10th annual InterFace Carolinas conference said that for a market to be truly successful, there needs to be “growth in both” urban and suburban districts. Panelists emphasized that some of the best deals for their businesses lie outside of the urban cores in the two-state region. “[Suburban] projects aren’t as expensive to develop,” said Carman Liuzzo, senior vice president of investments at Highwoods Properties. “I hope suburban [developments] don’t go away, our most recent three office developments have been in suburban Nashville, Tampa and Raleigh.” Liuzzo was a participant on the “State of the Market” panel that took place Thursday, May 30 at Hilton City Center in Uptown Charlotte. InterFace Conference Group and Southeast Real Estate Business hosted the conference, which …

June 6, 2019

Conference Coverage Features North Carolina Southeast Southeast Feature Archive

U.S. Economic Expansion Has Clear Runway to 2021, Says Wells Fargo Economist

by John Nelson June 4, 2019

CHARLOTTE, N.C. — The current U.S. economic expansion — 120 months and counting — is poised to become the longest in modern U.S. history come July. Mark Vitner, senior economist at Wells Fargo Securities, says the runway is clear for additional growth until at least 2021 before the start of the next recession. The last time the U.S. economy expanded for such a long duration was from 1991 to 2001. Post World War II, the average length of economic expansions has been 58 months, according to the National Bureau of Economic Research. “We don’t have a recession in our forecast. We put it in 2021 because we won’t forecast 2021 until September,” said Vitner. “We’ll likely put the recession in 2022. It’s hard to predict a recession years out. It doesn’t feel like there’s a recession right around the corner, but it never feels that way.” Vitner’s comments came during the keynote address at the 10th annual InterFace Carolinas, a networking and information conference that took place on May 30 at Hilton City Center in Uptown Charlotte. Hosted by InterFace Conference Group and Southeast Real Estate Business, the event brought together more than 240 attendees and featured six panels on …

June 4, 2019

Features Mixed-Use Retail

ICSC Roundup: Developer Talks Construction Costs, Store Closures, Role of Mixed-Use

by Taylor Williams May 30, 2019

LAS VEGAS — Besides rampant store closures, one of the biggest challenges retail developers currently face is high construction costs. An ongoing labor shortage, higher prices on certain materials that have been tariffed, and the general impact of inflation have all driven costs of new development to historically high levels. That said, developers that play the long game and have the vision and resources to execute multiple uses are up for the challenge. Structured Development, a Chicago-based real estate firm that builds a variety of project types, but tends to specialize in retail and mixed-use, is an example of such a company. Jeff Berta, the company’s senior director of real estate, met with REBusinessOnline at this year’s ICSC RECon show in Las Vegas to discuss current trends within the retail sector and the challenges of executing mixed-use developments. Berta has held a number of positions in the real estate development, construction management and architecture fields. What follows is an edited transcript of the conversation. REBusinessOnline.com: Construction costs are very high right now and are making projects more difficult to pencil out. What’s the real story behind these rising costs as it pertains to developing a mixed-use project? Jeff Berta: There …

May 30, 2019

Features Retail

Woodmont’s Meno: Store Closures Are Painful, But Necessary for Retail Sector’s Long-Term Health

by Taylor Williams May 28, 2019

LAS VEGAS — As president and CEO of asset services at The Woodmont Company — which manages about 18.5 million square feet of retail centers, enclosed regional malls and outlet centers almost exclusively on a third-party basis — Fred Meno has had a front-row seat to the store closures and retail repurposing projects that have defined the market in the e-commerce era. Meno, whose company is based in Fort Worth, specializes in work that has afforded him the opportunity to see the big picture, to grasp the most in-depth reasons behind why certain retail categories are failing and why others are thriving. In some cases, that’s a factor of what types of retail uses are featured in certain types of properties. In others, it’s a matter of the retailer entering into a highly leveraged buyout deal to appease shareholders and gain additional time to right-size its stores and reshape its strategy. Sometimes it’s a simple matter of not adapting quickly enough to game-changing technology that can take the industry by storm. REBusinessonline.com sat down with Meno last week in Las Vegas during RECon, which attracted more than 30,000 retail real estate professionals, to pick his brain on what the future …

May 28, 2019

Features Multifamily Seniors Housing

Survey: Investor Confidence in Seniors Housing Still High Despite Occupancy Challenges, Slower Transaction Volume

by Jeff Shaw May 22, 2019

CHICAGO — Investors are still cautiously optimistic about the seniors housing market even after the sector experienced a slight dip in transaction volume in 2018, according to the results of JLL’s Spring 2019 Seniors Housing Survey. The Chicago-based commercial real estate services firm surveyed more than 1,000 specialists in the seniors housing and care space. The results point to generally positive sentiment around the market, and notes that while transaction volume reached just over $13 billion in 2018 (a decline over recent years), the total number of transactions was up 41 percent year-over-year. “There simply weren’t as many large deals with big price tags in 2018 in comparison to the preceding few years,” says Brian Chandler, managing director of JLL Valuation & Advisory Services. “Though there were fewer large transactions, single assets and small portfolios have remained liquid.” Communities that feature the full continuum of care except for skilled nursing remain the most favored product. Eighty-eight percent of survey respondents said these assets were “very” or extremely” desirable, a 2 percent jump over the last quarter’s survey. Freestanding nursing facilities remained the least favorite asset type, though only 41 percent of survey respondents said they were “not at all desirable,” …

May 22, 2019

Features Retail

Current Economic Expansion Could Become Longest Yet, Says Nadji

by Jeff Shaw May 21, 2019

LAS VEGAS — The reinvention of the retail sector now underway is getting a boost from a U.S. economic expansion that is nearly a decade old but which still has legs, says Hessam Nadji, president and CEO of brokerage services firm Marcus & Millichap. Meanwhile, demographic shifts have altered the retail landscape in profound ways and will continue to do so, Nadji believes. Every day, 10,000 Americans turn age 65. An even greater number, 12,000, reach the age of 21 on a daily basis. “It is the most incredible dual demographic movement of any developed country on the history of the planet. That has a lot to do with why the economy is doing well and why retail is reinventing itself.” The longest U.S. economic expansion on record spanned a decade, from 1991 to 2001. The current expansion is poised to surpass that high-water mark this July. The economy has added 21 million jobs since 2009, a modest 16 percent increase during that span, according to Nadji. Meanwhile, inflation has been held in check. The PCE (personal consumption expenditures) inflation rate has fallen 190 basis points since 2007 to 1.5 percent. The 10-year Treasury yield, the benchmark for long-term, permanent …

May 21, 2019

Features Healthcare Northeast Feature Archive

As Healthcare Trends Toward Value and Efficiency, Buildings Follow Suit

by Kristin Harlow May 16, 2019

Digital connectivity and rising costs are rapidly transforming industries across the country, and healthcare is certainly no exception. Digital health solutions and the material realities of the economy, along with a changing regulatory landscape, are reshaping the way providers deliver care. For example, the increased uses of telehealth, artificial intelligence (AI) and more community-based facilities (such as urgent care centers) are changing the spaces providers need. This activity is in turn altering the real estate, construction and project management strategies for healthcare providers. Healthcare real estate professionals, from in-house capital project leaders to general contractors and project managers, should be aware of two trends particularly driving this sea of change in healthcare real estate: evolving technology and an industry-wide transition to value-based care. These trends are fueling the creation of larger, centralized healthcare systems with more expansive networks of agile, strategic facilities. Specifically, the industry is moving away from inpatient hospital settings and toward ambulatory care and community-based facilities as part of a larger healthcare system. In turn, built-environment professionals are being commissioned for more agile, specialized and technologically enabled capital projects over more geographically dispersed areas. With this activity comes change to how real estate professionals deliver projects for …

May 16, 2019

Features Multifamily

The Case for the Continued Strength of the Multifamily Sector in 2019

by Kristin Harlow May 14, 2019

Capital One’s survey conducted at the National Multifamily Housing Council’s annual conference earlier this year offered a lot of food for thought regarding the outlook for the multifamily sector in 2019. The vast majority of respondents — 70 percent — believe that we’re nearing the end of the current economic cycle. But despite that notion and despite the 70 percent who are concerned about either rising costs or interest rates, plenty of optimism remains. To this point, 37 percent cited strong fundamentals and 29 percent pointed to an abundance of capital to deploy as drivers of another strong year in this all-important segment this year. Indeed, Freddie Mac predicts multifamily origination volume will grow to $317 billion this year, driven by solid market fundamentals and strong investor demand for properties. The 2019 figure will exceed by 3.9 percent the $305 billion in originations that had been estimated for 2018. Nowhere is this trend more visible than in the New York multifamily market, where demand continues to boom. We see this pattern play out in places like Long Island’s Nassau County, where there’s a definite lack of multifamily inventory in locations like Garden City and New Hyde Park, and where new …

May 14, 2019

Features

103 Consecutive Months of Job Growth and Counting: Gains Total 263,000 in April

by Jeff Shaw May 9, 2019

Beating expectations, the U.S. economy added 263,000 jobs in April, according to the Bureau of Labor Statistics (BLS), marking 103 consecutive months of employment gains. Meanwhile, the unemployment rate ticked down two-tenths of a percentage point to 3.6 percent, the lowest level since 1969. Some observers are calling the latest BLS report “an April surprise” since the consensus forecast among economists surveyed by The Wall Street Journal called for total nonfarm payroll employment to increase by 190,000. The latest employment data comes on the heels of positive news that the U.S. GDP grew at a 3.2 percent annualized rate in the first quarter of 2019. REBusinessOnlinereached out to three economic experts to get their takes on the latest data and its impact on commercial real estate. The three participants in the online Q&A included Andrew Nelson, U.S. chief economist for Colliers International; Ryan Severino, chief economist for JLL; and Tim Wang, managing director and head of investment research for Clarion Partners LLC. The following are their edited responses: REBusinessOnline: Can you explain why the economy is performing better than expected so far this year and the effect that that’s having on commercial real estate? Andrew Nelson: The economy has outperformed expectations …

May 9, 2019

Newer Posts

Older Posts